Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

European-style option

Read a random definition: contiguity

A quick definition of European-style option:

An option is a choice or right to choose something. It can be a part of a contract where one party agrees to keep an offer open for a certain period of time. It can also refer to the right to buy or sell a certain amount of assets at a fixed price within a specific time frame. There are different types of options, such as European-style options that can only be exercised on their expiration date, and American-style options that can be exercised on any day. Other types include call options, put options, and stock options.

A more thorough explanation:

An European-style option is a type of financial contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a fixed price on a specific date. Unlike American-style options, European-style options can only be exercised on the expiration date.

For example, let's say an investor holds a European-style call option on a stock with a strike price of $50 and an expiration date of December 31st. If the stock price rises above $50 before December 31st, the investor can exercise the option and buy the stock at the lower strike price. However, if the stock price does not rise above $50 before December 31st, the option will expire worthless.

Another example of a European-style option is a currency option. If a company holds a European-style currency option to buy euros at a fixed exchange rate on a specific date, they can only exercise the option on that specific date.

Overall, European-style options provide investors with flexibility and risk management strategies, but they also come with limitations due to their fixed expiration date.

European Patent Organization | European Union

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
sadperson4324
15:59
the magician is right
person4324
16:00
thank you
16:00
WOOOOOOOOOOOOOOOOOOOOOO
16:00
aweee what a good day this is
Applesaucer
16:00
WOOOOOOHOOOOOOOO
I’m out here healing ppl
fo pm miracle
16:29
fo p em
16:29
guys if I never chat again it is bc tornado got me
16:56
NOOO
is anyone else addicted to the uva law youtube videos
i think i just got into marquette law
late fo pm miracle?
this is crazy LMAO?
loyola why couldn't it be you
17:16
@badhorrormovie: !!! COngratzz
THANK u!!!!!!!!!
honestly considering just saying eff this cycle, retaking the lsat, switching jobs for a year and reapplying for 2026 start
back on linkedin premium wowza
i like the linkedin premium classes
taught myself excel on those
i gotta try those
haven't been making the most of my membership
anyone still waiting to hear back from bc today?
@badhorrormovie: congrats holy fuck!
NosyBeagle
18:19
@badhorrormovie: I knew you could do it! Good job!
18:50
unfortunately for chat, the tornado was unsuccessful in displaying me from this earth
19:56
damn
19:56
better luck next time
skill issue
LSD+ is ad-free, with DMs, discounts, case briefs & more.